NOBILITY HOMES: Controlling Our Future Through Vertical Integration NOBILITY HOMES, INC. ANNOUNCES SALES AND EARNINGS FOR ITS THIRD QUARTER 2017

The following excerpt is from the company's SEC filing.

Ocala, FL… September 14, 2017—Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its third quarter ended August 5, 2017. Sales for third quarter 2017 were $8,906,385 as compared to $9,779,621 recorded in third quarter 2016. Sales declined due to a significant amount of rain during the quarter which delayed the completion of construction, ultimately delaying fundings at Prestige. Additionally, the increase in business, industry wide, has placed pressure on the limited capacity of

sub-contractors

necessary for the site-work portion of the construction of our homes. Our re tail sold homes under construction in the field increased 123% over the third quarter last year. Income from operations was $934,864 versus $1,240,492 last year. Net income after taxes was $669,883 as compared to $894,271 last year. In the third quarter of 2017 we received payment under an escrow arrangement related to the finance revenue sharing agreement between 21

Mortgage Corporation and the Company of $72,867. Diluted earnings per share were $0.17 compared to $0.22 per share last year.

For the first nine months of fiscal 2017, sales were up 9% to $27,525,855 as compared to $25,269,511 for the first nine months of 2016. Income from operations was up 3% to $3,267,938 versus $3,170,102 last year. Net income after taxes was $2,480,715 compared to $5,244,553 last year. In the second quarter of 2016 the Company sold its limited partnership interest in CRF III, Ltd. (“Cypress Creek”), a retirement community which resulted in a gain of $3,990,000 and also received revenue of $788,566 under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21

Mortgage Corporation, Prestige Home Centers, Inc. and Majestic Homes, Inc. Diluted earnings per share were $0.62 per share compared to $1.30 per share last year.

Nobility’s financial position for the first nine months of 2017 remains very strong with cash and cash equivalents and short term investments of $26,237,802 and no outstanding debt. Working capital is $35,238,837 and our ratio of current assets to current liabilities is 8.9:1. Stockholders’ equity is $46,588,232 and the book value per share of common stock outstanding increased to $11.65.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through July 2017 were up approximately 7% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many manufactured housing buyers from purchasing affordable manufactured homes.

Our manufacturing facility was not damaged by Hurricane Irma. In fact, none of our model homes displayed at our Prestige Model Centers suffered any damage; not even the ones in Punta Gorda, near where the storm made landfall on the Florida peninsula. This is another testament to the strength of today’s manufactured homes.

Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country”.

On June 5, 2017 the Company celebrated its 50

anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, we are the only vertically integrated manufactured home company headquartered in Florida.

MANAGEMENT WILL NOT HOLD A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL TERRY OR TOM TREXLER @

800-476-6624

EXT 221 OR

TERRY@NOBILITYHOMES.COM

TOM@NOBILITYHOMES.COM

Certain statements in this report are forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, competitive pricing pressures at both the wholesale and retail levels, increasing material costs, uncertain economic conditions, changes in market demand, changes in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, reliance on the Florida economy, possible labor shortages, possible materials shortages, increasing labor cost, cyclical nature of the manufactured housing industry, impact of fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.

NOBILITY HOMES, INC.

Consolidated Balance Sheets

November 5,

(Unaudited)

Assets

Current assets:

Cash and cash equivalents

25,607,071

24,562,638

Short-term investments

630,731

481,025

Accounts receivable - trade

2,602,610

2,641,763

Note receivable

500,000

Mortgage notes receivable

12,874

Inventories

7,917,057

6,969,081

Pre-owned

homes, net

1,134,211

1,295,694

Property held for sale

213,437

Prepaid expenses and other current assets

577,976

638,939

Deferred income taxes

491,270

556,773

Total current assets

39,687,237

37,869,067

Property, plant and equipment, net

4,256,803

4,063,711

1,305,408

1,733,610

Interest receivable

89,857

48,376

Note receivable, less current portion

1,030,000

2,030,000

Mortgage notes receivable, less current portion

241,218

174,270

Other investments

1,448,254

1,367,496

386,018

Cash surrender value of life insurance

3,265,916

3,085,916

Other assets

156,287

Total assets

51,866,998

50,914,751

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

668,817

835,279

Accrued compensation

469,956

682,815

Accrued expenses and other current liabilities

1,002,843

1,123,698

Income taxes payable

402,351

759,128

Customer deposits

1,904,433

1,706,795

Total current liabilities

4,448,400

5,107,715

830,366

1,140,529

Total liabilities

5,278,766

6,248,244

Commitments and contingent liabilities

Stockholders’ equity:

Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding

Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued

536,491

Additional paid in capital

10,668,790

10,663,348

Retained earnings

45,338,260

43,458,271

Accumulated other comprehensive income

415,877

266,171

Less treasury stock at cost, 1,367,338 shares in 2017 and 1,361,300 shares in 2016

(10,371,186

(10,257,774

Total stockholders’ equity

44,666,507

Total liabilities and stockholders’ equity

Consolidated Statements of Income and Comprehensive Income

Unaudited

Three Months Ended

Nine Months Ended

Aug 5,

July 30,

Net sales

Cost of goods sold

(6,942,792

(7,599,070

(21,139,315

(19,366,957

Gross profit

1,963,593

2,180,551

6,386,540

5,902,554

Selling, general and administrative expenses

(1,028,729

(940,059

(3,118,602

(2,732,452

Operating income

Other income

Interest income

33,543

43,155

105,347

77,246

Undistributed earnings in joint venture - Majestic 21

24,037

28,429

80,758

97,539

Proceeds received under escrow arrangement

298,824

Gain on sale of investment in retirement community

Miscellaneous

18,749

33,411

25,404

Total other income

149,196

77,143

518,340

4,978,755

Income before provision for income taxes

1,084,060

1,317,635

3,786,278

8,148,857

Income tax expense

(414,177

(423,364

(1,305,563

(2,904,304

Other comprehensive income (loss)

Unrealized investment gain (loss)

21,081

(13,176

149,706

(40,427

Comprehensive income

690,964

881,095

2,630,421

5,204,126

Weighted average number of shares outstanding:

4,003,096

4,022,311

4,004,058

4,023,689

4,004,387

4,023,714

4,005,325

4,024,739

Net income per share:

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever NOBILITY HOMES INC makes a similar move, sign up!

Other recent filings from the company include the following:

NOBILITY HOMES INC Just Filed Its Quarterly Report: Note 5Net Income per... - March 16, 2020
Nobility Homes, Inc. Announces Sales And Earnings For Its First Quarter 2020 - March 13, 2020
Nobility Homes, Inc. Announces Sales and Earnings for Its First Quarter 2020 - March 12, 2020

Auto Refresh

Feedback